New energy vehicles to account for 20 per cent of total automobile market demand by 2025: report

Visitors check a hybrid new-energy car at an auto show in Changchun, Jilin province. A total of 72,711 new-energy vehicles were sold in the country in the first six months of the year. [Photo/Xinhua]

Annual sales of new energy vehicles will account for 20 per cent of total automobile market demand by 2025, according to a news report by Economic Information Daily, a publication sponsored by China’s official Xinhua News Agency.

According to the newspaper, as new energy vehicles are widely adopted for household, governmental, public transport and logistical uses, annual sales of the vehicles will make up over 5 per cent of total automobile market demand by 2020, increasing to 20 per cent in 2025.

The report also mentioned that new energy vehicles from China's automakers will account for more than 80 per cent of market shares by 2025.

China has worked out a roadmap of development for new energy vehicles over the next 10 years, said the newspaper. According to the roadmap, by 2020 annual sales of new energy cars will exceed 1 million and China-developed vehicles will make up more than 70 per cent of market share.

China has introduced nearly 10 policies to support the development of new energy vehicles in the first half of 2015 including reduction of new energy vehicle purchase tax and giving access to battery electric passenger vehicles.

According to statistics from the China Association of Automobile Manufacturers, the accumulated production and sales of new energy vehicles in China in the first nine months have reached 144,284 units and 136,733 units respectively, increasing 2 and 2.3 times year on year. Based on these statistics, sales of new energy vehicles in 2015 overall are expected to reach 200,000 units.

Not only does central government invest in new energy vehicles, but also local governments give support to this programme, said Zhang Junyi, a partner of Roland Berger, motor industry consultants.